The 2021-2022 school year is coming to a close, and you’ve likely planned activities to help your children get the most out of their summer break. They may be heading off to camp or anticipating a fun family vacation. Regardless of how you and your family plan to spend the summer, financial literacy is a year-round activity. Teaching your children the value of money gives them the foundation to make smart financial choices now and in the future. Once school ends and your children have some spare time, it’s a great opportunity to get in some subtle tips and “lessons” that are both fun and rewarding! Here are a few activities to try:
House Chores
Completing weekly chores in exchange for an allowance is an effective way to introduce your children to the beginning stages of budgeting and saving. These chores can be as simple as doing the dishes, taking out the trash, or helping to mow the lawn. You can even go one step further and ask them how much they think they should be paid for a chore. It should be a fun exercise for them and give them a sense of pride in the work they do while learning the value of a dollar. Creating a positive work ethic at a young age can help to translate to their work in the classroom and eventually when they enter the working world.
Take Them Shopping
Taking your children shopping, with the chore money that they earned, is another great way to show them how much things cost and how to budget. This exercise will allow you to discuss “wants” versus “needs.” For example, at the grocery store they may want to buy ice cream, but they need to buy ingredients for dinner. Once you have bought the necessities, now they see what is left over for wants, and have to decide what it is they really desire.
Whether it’s essentials like groceries or the clothes they wear, this will help your children to understand the basics of what items cost. When you’re ready to go to the store, try sitting down with your children and creating a list of items needed with potential prices included. You can even have them create their own list and compare it to yours.
Introduce Planning
Every child at one point or another covets the latest and greatest gadget and begs their parent to buy it for them. This situation can be used as a learning opportunity. Whether it’s through allowance, babysitting, or other sources most children earn money in some way. Help them develop a plan to save enough for that item. It will also be rewarding for them to know they are able to pay for something on their own.
If you’re looking for more helpful resources, reach out to your Financial Advisor at SageSpring Wealth Partners. Educating your children can be a daunting task but we’re here to help you with all faucets of you and loved one’s financial journeys.
